India E-commerce Market Set to Skyrocket to $163 Billion by 2026

As consumers in both major metropolitan areas and smaller towns across India increasingly embrace e-commerce, online shopping is undergoing rapid expansion. Projections indicate that by 2026, India's e-commerce market will surge to $163 billion, with online sales constituting over 25% of total retail transactions, excluding groceries. Empower India, a leading public policy think-tank, collaborated with LocalCircles, India’s leading public and consumer pulse aggregator, to gather the pulse of the consumers on eCommerce shopping. The survey aimed to understand the shift in consumer preferences towards online transactions, fueled by the demand for better options and unparalleled convenience.

The survey spanning 305 districts, 69,000 e-commerce users revealed a strong preference for online shopping, with 63% of men and 37% of women indicating an inclination towards digital transactions. 36% of eCommerce users use e-commerce sites as their primary shopping method. The surge in preference for e-commerce platforms stems from the unmatched convenience of home delivery (82%), coupled with the ease of finding desired products (67%) and the hassle-free return/refund process (61%). Interestingly, when it comes to essential purchases like groceries, 41% placed their highest trust in Amazon, followed by Big Basket (28%). The crucial takeaway is that while many urban Indian online shoppers rely on swift delivery platforms for spontaneous grocery needs, their substantial and pre-planned grocery purchases come through established platforms like Amazon and Big Basket.

When shopping online, consumers require assurance of timely, secure delivery without damage or theft, alongside real-time shipment tracking updates. Amazon leads as the most trusted platform for discretionary items, with 72% of shoppers placing their trust in it. Other platforms like Flipkart (5%), Jio Mart/Ajio (4%), and Tata Neu/Cliq (4%) are also trusted, albeit to a lesser extent. Amazon remains the top choice for reliable deliveries, with 74% of shoppers finding its service the most dependable.

Mr K Giri, Secretary General, Empower India, said, "As India continues with its economic growth story, we wanted to analyze how much trust citizens of India place on e-commerce players. It is clear that a large portion of citizens prefer online shopping and ecommerce players in India have a lot to do to gain significant traction.  The future of shopping in India is dependent on trust and online players have work cut out .”